Fidelity Follows BlackRock, Files For Spot Ethereum ETF – Where Next for Ether (ETH)?
Asset management giant Fidelity just filed a 19b-4 with the Chicago Board Options Exchange (CBOE) to set up a spot Ethereum exchange-traded fund (ETF) called the Fidelity Ethereum Trust, just one day after BlackRock filed to set up the iShares Ethereum Trust, its own spot Ethereum ETF.
The latest move to offer a spot Ethereum ETF to investors comes as major asset managers double down on bets that cryptocurrencies have a bright future, and that their new proposed crypto investment vehicles will gain quick approval in the US.
Both asset managers plus a dozen others filed to set up spot Bitcoin ETFs back in June, with many analysts betting that these applications will gain approval as soon as January.
Fidelity manages over $4.5 trillion in investor funds, whilst BlackRock manages over $8 trillion, making it the largest asset manager in the world.
Ether (ETH), the official name of the cryptocurrency that powers the Ethereum network (though many also wrongly refer to the cryptocurrency itself as Ethereum), was relatively unmoved by the news of Fidelity’s approval.
ETH was last changing hands just above $1,950, having dipped over 4% this week as traders take profit in wake of the cryptocurrency’s recent failure to break above its yearly highs in the $2,100s.
Despite its recent pullback, ETH is still up an impressive 28% versus its October lows.
The cryptocurrency has been a beneficiary of a broader market rally driven by 1) optimism about expected near-term spot Bitcoin ETFs and 2) an improvement in the macro backdrop as investors bet the Fed’s tightening cycle is over, with US stock rallying and US bond yields and the dollar dumping this month.
More recently, ETH has been supported by the news that major asset managers are looking
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